Judicial Determination of Packaging Design Rights: Unfair Competition Dispute Between Australian and Guangzhou Companies

WISECODE Take

On July 21, 2026, the Hangzhou Intermediate Court clarified the ownership of packaging designs after partnership breakups in case (2025) Zhe 01 Min Zhong No. 11416. Many business owners mistakenly believe that local distribution automatically grants them rights to packaging designs. In this case, distributors like Guangzhou Trade Co. were ordered to pay 700,000 RMB for unfair competition. The court ruled that goodwill belongs to the actual manufacturing source (the Australian company) that consumers recognize, not the local importer. This emphasizes that distribution channels do not equal goodwill. Businesses with their own independent supply chains are unaffected, while others can use Zhidian's "Patent Portfolio Health Check" to clarify IP ownership in contracts. We recommend: first, clearly define packaging rights in agency agreements; second, avoid over-associating local brand marketing solely with the foreign manufacturer if you wish to retain local goodwill. Understanding the true attribution of goodwill is the core principle of standing firm in cross-border business.